30th March 2022

In March 2019, Julie James MS, Minister for Climate Change, decided not to implement the decision to change the maximum commission rate from the sale of a residential park home, but to reconsider the matter afresh.

However, the outbreak of Covid-19 meant that resources were redeployed to enable officials to focus on the immediate challenges being faced as a consequence of Covid-19. This meant that the work to gather further evidence and engage with the sector was postponed.

It is clear that the pandemic is still having a significant impact on our lives. It has prevented us from fully engaging with the sector to seek evidence so that the Minister can consider this matter afresh.

The pandemic and our ‘no-one left out’ approach have shone a light on the extent of hidden homelessness in Wales. Welsh Government is therefore focused on preventing homelessness and transforming homelessness services for the long term. We are also focusing on supporting people facing cost of living increases, including supporting people to sustain their tenancies.

Alongside this, the war in Ukraine has caused the displacement of many tens of thousands of people from their homes and marked the onset of the largest humanitarian crisis in Europe for decades. As a nation of sanctuary, we are committed to do whatever we can to welcome and support people fleeing the war in Ukraine.

As a consequence of these unprecedented pressures, the Minister has asked officials to postpone work on gathering evidence for the remainder of this Government term.

We realise that some people will be disappointed to hear that this work will continue to be postponed. The Minister recognises the importance of the commission rate and the impact this has had on owners of park homes and site owners, and continues to believe that the best way to proceed is to ensure any decision is based on accurate, up-to-date and carefully considered evidence.

However, in order to provide the information on which the Minister can take a balanced view, she must have the strongest possible evidence base on which to base her decision. This will require significantly more work which the pandemic, the war in Ukraine and other pressures have not allowed us to progress.

Yours sincerely

Amelia John

Deputy Director, Housing Policy


As a result of the consultation process on the Park Homes Commission Rate (See the above Link), the Minister in the Welsh Assembly proposed that the commission payable on the sale of a park home should be reduced from the current maximum of 10 percent by one percent each year for five years. This would bring the maximum rate of commission down to 5 percent. We in IPHAS and NAPHR pointed out that the park owners could claim an increase in pitch fees to compensate but the Minister replied that this could be settled by the tribunal system.

In practice, the tribunal would have to follow the law and implied term 18(1)(d) states that any change in the law affecting the management of the site could be considered at the pitch fee review. Therefore, we wrote to the Welsh Assembly expressing our concern at the probable increase in pitch fees resulting from their proposal. When this appeared to have no effect, we combined our letters with letters from the BH&HPA and NCC. However, we did make it known to all that our reasons were different. Our reasons were to prevent an increase in pitch fees while the BH&HPA and NCC were concerned about the park owner’s income.

The Welsh Assembly have now withdrawn their proposal, but that is only temporary, and IPHAS will continue to monitor the situation. We will explain to the Welsh Minister, that a simple amendment to the implied term could have the desired effect.

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